Move follows indictment of former Fiat Chrysler executive and wife of former UAW official who died in 2015

The United Auto Workers union has removed “a narrow universe of people” it believes to have been connected to an alleged conspiracy to use autoworker training funds for extravagant personal purchases, according to people familiar with the matter.

UAW leadership has also launched an internal investigation led by an outside counsel. The actions underscore the seriousness of the allegations involving key contract negotiators, including...